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University of Colorado Boulder
Fringe Benefit Summary FY 2010-11

September 2011

Summary
Total fringe benefit expenses in FY11 increased $4.7m, a 3.9% increase from FY10. In FY09, total fringe benefit expenses were 22.4% of total salary expenses, in FY10 24.3% and in FY11 24.6%. Total salary for FY11 increased $13.8m, a 2.8% increase from the previous fiscal year. An increase in employer contributions for health, life, and dental (HLD) expenses is the primary reason fringe benefit rates increased at a greater rate than salaries.

Total fringe benefit expenses
The amount of total costs provided by the employer contribution has been greater in the past fiscal years causing benefit expenses to grow at a higher rate than salaries. Chart 1 - Total fringe benefit expenses, shows total actual fringe benefit expenses from FY04 FY11.

Chart 1 -- Total fringe benefit expenses ($ in millions)

fringe benefit rates

Total salary expenses
Total salary for FY11 was $501,934,342, a 2.8% or approximately $13.8m increase from the previous fiscal year. Chart 2 - Total salary expenses below compares actual salary expenses from FY04 FY11.

Chart 2 -- Total salary expenses ($ in millions)

salary expense

Fringe benefit expense categories

Below, Table 1 -- Actual $ changes in Fringe Benefit expenses from FY10 to FY11 identifies significant dollar changes for benefit categories by employment class. Some benefit categories are tied directly to salary which results in commensurate increases when salary increases.

Table 1 -- Actual $ changes (in millions) from FY10 to FY11
    Totals   Faculty FT  Prof FT/Class Perm    Prof PT/Class Temp  Student Fac Hourly
Health, Life and Dental Insurance$4.31$1.04 $3.25$0.01 $0.00$0.00
Retirement (s) ($0.40) ($0.14)($0.22)($0.04) $0.00$0.00
Annuitants, Medicare (s), Term Leave $1.33$0.49$0.82$0.00 $0.01$0.01
Disability Insurance$0.09$0.01 $0.08$0.00 $0.00$0.00
Student Insurance$0.26$0.00 $0.00$0.00 $0.26$0.00
Unemployment Compensation Claims$0.03$0.00 $0.01$0.01 $0.00$0.01
Workers' Compensation Insurance($0.95) ($0.30)($0.52) ($0.03) ($0.07)($0.03)
(s)Indicates salary dependant expenses.

Health, Dental, and Life Insurance (HLD) - The overall HLD category increased from the previous fiscal year. Health and Dental Insurance are both elective driven; basic Life Insurance is automatic. For health insurance, the employer contribution amount grew (see table 2 below), as did the overall premium total, which increased between 4.95% and 14.83% (depending on plan and level of coverage). Dental insurance premiums remained the same for Faculty and Professional employees, and increased slightly for Classified employees; overall dental insurance costs increased very slightly. Life insurance premiums remained the same for all employees, and overall life insurance expenditures increased slightly.

Retirement (FICA, ORP & PERA) - All retirement categories are salary driven, and FICA and ORP increased due to higher salary expense. PERA expenses decreased due to a 2.5% shift in contribution from employer to employee. The overall category stayed virtually the same from FY10, with the PERA decrease offsetting increases in the FICA and ORP. FICA costs are salary driven up to a dollar limit of $106,800 per employee for FY11; this amount is the same as it was the previous fiscal year. Costs for Other Retirement Plans (ORP), covering faculty and professional employees, went up 5.3%. PERA expenses decreased 12.0% from the FY10 amount.

Starting in January 2006, SB04-257 required an increase in the employer contribution for PERA for Classified employees. The Amortization Equalization Disbursement (AED) was put in place to reduce PERA's unfunded liability, caused by previous State decisions to reduce the employer contribution, as well as the downturn in the economy. In FY06, the 10.15% statutory employer contribution, plus the AED of 0.5%, made the total PERA employer-paid contribution 10.65% of salary. In January 2007, the total employer contribution increased to 11.15%. January 2008, the total employer contribution increased to 12.05% due to a 0.4% increase in AED and a new Supplemental AED (SAED) component increase of 0.5%. In January 2009, the AED increased 0.4% and the SAED increased 0.5%, making the total employer contribution 12.95%. In January 2010 the AED increased 0.4% and the SAED increased 0.5%, making the total employer contribution 13.85%. The 2.5% shift went into effect in July 2010, making the total employer contribution 11.35%; in January 2011 the AED increased 0.4% and the SAED increased 0.5%, raising the total contribution to 12.25%.

Annuitants, Term Leave, Medicare - This category increased 9.9%, spread among the three components. Annuitants includes health, life, and dental insurance for retired faculty and staff. It is elective driven and saw an increase of 13.4% or $727,132. Term Leave includes expenses associated with leave payouts for employees who separate from the University. The amounts can vary from year to year based on retirements and other separations. Term Leave increased 19.5% from the previous fiscal year by an amount of $418,493. Medicare is salary driven with no limits and was a 3.2% increase or $188,005.

Disability Insurance - Overall disability insurance costs increased 8.6%, representing a cost increase of $86,957.

Unemployment Compensation Claims - This cost is driven by claims and increased $29,457 (4.5%) from the previous fiscal year.

Workers' Compensation Insurance - This cost is the annual total for the premium paid by Risk Management for all Boulder campus employees This premium fell 23.6% from the previous fiscal year.

Graduate Student Health Insurance - This is health insurance for graduate students on academic appointment and the cost is elective driven; 70% of the premium cost is covered by the campus. This expense item accounts for nearly all of the Student Faculty fringe benefit costs. In FY11, the premium increased by $52.50/semester from $1052.50/semester to $1,105/semester. Overall, graduate student faculty insurance increased 9.8%, or $260,702, from the previous year.

Employer contribution comparison for health insurance

Table 2 - % Increase from previous fiscal years for health insurance and specifically identifies fiscal year comparison amounts by employee category and elective coverage.

Table 2 -- % Increase in employer contribution for health insurance
from previous fiscal year (pfy)
Health Insurance    FY11 employer
contribution
FY10 employer
contribution
Faculty & Prof Exempt  total   % pfytotal% pfy
Employee Only  $402.43   5.16%    $382.69      3.97%  
Employee + Spouse/SGDP     $678.57 4.78%$647.6111.37%
Employee + Child(ren) $678.57 4.78%$647.6111.37%
Family$964.33 5.10%$917.5710.12%
Classified staff - CU plans
Employee Only$400.55 5.58%$379.383.07%
Employee + Spouse/SGDP$667.81 5.27% $634.405.32%
Employee + Child(ren)$705.99 5.24%$670.8224.12%
Family$973.275.12%$925.8411.11%
Classified Staff - State Plans
Employee Only$396.69 5.25%$376.923.45%
Employee + Spouse/SGDP$663.95 5.07% $631.944.91%
Employee + Child(ren)$702.13 5.05% $668.3625.40%
Family$969.41 4.98%$923.3811.31%

Last revision 08/16/13


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